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The required rate of return on the bonds (ka) of the EAP Corporation is 16 percent. The firm's rate of return on stocks (kcs) in
The required rate of return on the bonds (ka) of the EAP Corporation is 16 percent. The firm's rate of return on stocks (kcs) in general is 10 percent. The firm IS NOT USING PREFERRED STOCK to finance its operations (0% preferred stock financing). If the firm's marginal tax rate is 33 percent, and it will be financing projects with a 45%-55% debt to equity mix, find its weighted average cost of capital (WACC). IMPORTANT!!! PROVIDE YOUR ANSWER UP TO 2 DECIMAL POINTS AND PUT %" SIGN IN YOUR
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